Microsoft Is Ending Free Microsoft 365 Business Premium for Nonprofits—Here’s What Comes Next
For years, Microsoft has supported U.S.-based nonprofits by offering 10 free Microsoft 365 Business Premium licenses through its grant program. This offer has helped thousands of organizations access enterprise-grade security, cloud storage, and productivity tools at no cost.
However, starting July 1, 2025, Microsoft will discontinue these free licenses through both the Direct and Cloud Solution Provider (CSP) channels
What’s Changing?
The following grant offers will be discontinued:
- Microsoft 365 Business Premium (up to 10 users)
- Office 365 E1 (via CSP/Direct)
Existing licenses will expire at the customer’s next renewal date on or after July 1, 2025.
Example:
- If your renewal is in June 2025, you’ll keep the license until June 2026.
- If your renewal is in October 2025, your free license will end in October 2025.
If your organization has an existing Microsoft 365 license, you will receive Microsoft email alerts at 90, 60, and 30 days before your license ends. After licenses are deactivated, organizations will have 90 days of data access under Microsoft’s standard retention policies.
What’s Still Available?
Microsoft remains committed to nonprofit support, just through different channels:
- Microsoft 365 Business Basic – Up to 300 free licenses
- Discounted licenses – Up to 75% off many Microsoft 365 offerings, including Business Premium
- Office 365 E1 – Up to 2,000 granted licenses available via Enterprise Agreement only
What’s the difference?
Business Basic offers web-only Office apps (requires your web browser), limited security, and no device management.
Business Premium, on the other hand, includes advanced security, full desktop Office apps, and device controls.
What Should Nonprofits Do Now?
If your organization is using soon-to-expire free Business Premium licenses, you have a few key options:
- Check your renewal date. This determines when your grant license will expire.
- Evaluate Usage – Determine how many users rely on Business Premium features such as advanced security, device management, and desktop Office apps. Does every single one need all the benefits of the Business Premium for now?
- Plan for Transition – Decide whether to:
- Migrate users to Business Basic (web-only apps, no device management)
- Upgrade to discounted Business Premium
- Explore the E1 Enterprise Agreement path
- Budget for changes. How much is going to cost your org? Consider the cost of switching to discounted licenses. Maybe you can save more than the others?
- Backup Data – As with any license change, make sure to back up your organization’s data is in a secure, compliant manner.
We’re Here to Help
Plain English Technology Services works with nonprofits every day. We can help you navigate these changes, avoid surprise disruptions, and choose the most cost-effective options for your mission.
Schedule a free consultation today and stay ahead of these changes.